RF's Financial News

Sunday, June 26, 2016

For 2 years, I've been
saying that our FED has been looking for anything to blame the ills of our
economy on. Our FED has painted itself
into a ‘credibility problem’ corner by suggesting that the U.S. economy was in recovery
mode with great job growth – while not even being able to raise interest rates
one quarter of one percent.Our FED was
desperate. Week after week the economic
reports were disappointing: rail shipments down, durable goods down, retail sales
down, truck deliveries down, etc.Month
after month they would preach: it’s the weather, it’s China, it’s the lack of
inflation, etc.They were looking ‘so
stupid’ that even CNBC’s Steve Liesman asked: “Ms. Yellen, do you think the FED
has a credibility problem?”

Our FED has been desperate
for some event that they could blame our ills on because job #1 at the FED is –
‘Keeping Your Job’.They know that cries
for their replacements would have hit a crescendo if despite their entire lever
pulling and button pushing – the economy still crashed. Why the heck do we need a FED playing God with
our monetary policy if all of their policies fail to keep a deep recession
away? We could easily turn their
function back over to the Treasury, and terminate the UNELECTED heads of the
PRIVATE banking cartel known as the FED.

But Friday their event
came.The BrExit vote won't cover up the
last few years of their bumbling, but it does take the pressure off of them concerning
future interest rate hikes. Now they can
say: “We were on pace to gradually hike rates, starting in July, but the BrExit
vote has made the entire global economy more vulnerable, and considerable study
will be necessary to gauge the monetary repercussions." In other words, "Thank you England, you
saved us from looking like the incompetent jerks that we really are.Otherwise we would have to meet in July and
talk about ‘data and dots’ again.Now we
can simply point a finger across the Atlantic and say: Thank you England.”

Factually, NO ONE KNOWS
what BrExit really means because it’s never happened before.All of the people writing detailed
descriptions about what will happen must have a more expensive crystal ball
than I do. I find it hard to predict
because wild currency swings are in full force right now.For example: to download a song from Apple’s
iTunes store costs $0.99 in the U.S.Come Monday, what will that same download cost in Germany, Britain, and
France?Due to the various exchange
rates it could cost anything, but it will definitely be a lot higher.

-At what point do
people in Germany, Britain, France and the EU just stop downloading iTunes music
simply due to the increased cost?

-And without that
‘previously predictable’ revenue stream, when does Apple go into ‘cash conservation’
mode and stop spending (including on hiring and on corporate buy-backs)?

I’m betting that BrExit is
a fairly long, and drawn-out affair.I’m
also betting that other nations just pushed their own SwExit, GrExit, and
FrExit referendums to the ‘front burner’.Just today I heard about Scotland, Italy, and Hungary – on top of
Sweden, Germany and France that were previously in the queue.Did you know that the EU laws regulate:

-The amount of
curvature of a banana (otherwise you can’t sell it),

-The straightness
of a cucumber (otherwise – no sale), and

-Eggs can no
longer be sold by the dozen, but must be sold by weight.

The EU regulators have to
know that it was this type of ‘over-the-top’ stupidity that helped the Brits
and will help others to say ‘Goodbye’.

We won’t know the extent
of the disruptions until we see how willing the EU is to compromise on their
treaties and trade tariffs.The EU could
try and punish the UK by increasing trade tariffs and becoming even more
totalitarian.Or they could try and hold
things together by negotiating fairly, and showing other member nations that
they're not the bloodthirsty slime that they are accused of being.In any case, there’s plenty of blame being
handed out this weekend, but at least our FED is off the hook until the end of
the year.

The Market:

Should Britain have left
the Euro?Heck yeah.It is just business.How can any country survive with two diametrically
opposed economic systems?On one hand
you have each individual government running his or her own fiscal and monetary
show, and on the other hand you have an all-powerful central planner running a roughshod
monetary policy as he sees fit.It’s
natural that the well-run governments will end up bailing out the irresponsible
ones. When the EU was formed, all of the
economists ignored the math, as they were enamored with the ideas of: unification,
trade, and immigration. Unfortunately,
you can ignore the math – you just can’t avoid it.Or said differently by Ms. Thatcher:
“Eventually you run out of other people’s money.”After all, why does Britain have to absorb
any of the debt that the EU is incurring due to the poor fiscal policies of a
few of its members?It was only a matter
of time before the strong nations started to leave, or the weaker ones invited
to leave.

As for trading this week,
I sat on my hands.I'm not trying to
take a victory lap here, but I just saw too many divergent elements that kept
me on the sidelines.At the core a
single issue: Google and Facebook have their fingers on the pulse of BILLIONS
of people, and both have become experts at predicting behavior. They were both suggesting that the UK people
wanted out. I chose listening to social
media over broadcast media, and kept myself on the sidelines with just my holdings
in the precious metals.(FYI – Gold was
up $56 on the day.)

So what do I do now? Many people are calling for ‘Buy-the-Dip’ –
because that’s all they know.I don't think
that ‘Buying-the-Dip’ is the wisest move – yet.Sure, we should get a bounce after loosing 610 points on the DOW and 76 on
the S&P’s. But will the bounce hold,
or will it be just a ‘dead cat bounce’ and we roll back over later in the week?
I think that the market has a date with
‘lower’. I don't know if that means
Monday or Tuesday, or over the weeks to come. The BrExit vote is going to cause a ton of
questions over what’s next, and what everyone is going to do. Last weeks economic reports were lousy, and I
don't suspect they're going to get much better. This feels to me like a sideways and down market
because:

-In this type of
marketplace (with the volatility futures being inverted), the algorithms will
be selling into every rally.

-Margin calls
went out on Friday, so there will be more selling on Monday.

-We are currently
sitting at the 2037 level on the S&P.
We hit a ‘lock limit’ low on Friday of 1999 which means everyone will
have purchased hedges around the 2,000 area of the S&P’s. This virtually guarantees that the market
will touch that range in the near future.

-Currencies are all
over the map right now, and will cause every CFO to ‘clamp down’ on corporate
spending immediately. That also means we should see a sharp decline in
corporate buy-backs on Monday as well.

-For Monday thru
Wednesday, if you see a ‘Rip-Your-Face-Off’ rally, sell into it or SHORT it.

-The S&P is
calculating a 140 point expected move this coming week. That means that
the S&P could fall from 2038 to 1880 by this time next week. That type of move could cause a global
recession.

I had a great week last
week, and am keeping it fairly simple by being:

-Long various
mining stocks: AG, AUY, CDE, FFMGF, FSM, NGD, and PAAS,

-And Long an oil
supplier: REN.

To follow me on Twitter.com and on StockTwits.com to get my daily thoughts
aand trades – my handle is: taylorpamm.

Please be safe out there!

Disclaimer:

Expressed thoughts proffered within
the BARRONS REPORT, a Private and free weekly economic newsletter, are those of
noted entrepreneur, professor and author, R.F. Culbertson, contributing sources
and those he interviews. You
can learn more and get your free subscription by visiting: <http://rfcfinancialnews.blogspot.com>
.

Please write to Mr. Culbertson at:
<rfc@culbertsons.com>
to inform him of any reproductions, including when and where copy will be
reproduced. You may use in complete form or, if quoting in brief, reference
<rfcfinancialnews.blogspot.com>.

If you'd like to view RF's actual
stock trades - and see more of his thoughts - please feel free to sign up as a
Twitter follower - "taylorpamm"
is the handle.

If you'd like to see RF in action -
teaching people about investing - please feel free to view the TED talk that he
gave on Fearless Investing: http://www.youtube.com/watch?v=K2Z9I_6ciH0

Views expressed are provided for
information purposes only and should not be construed in any way as an offer,
an endorsement, or inducement to invest and is not in any way a testimony of,
or associated with Mr. Culbertson's other firms or associations. Mr. Culbertson and related parties are
not registered and licensed brokers. This
message may contain information that is confidential or privileged and is
intended only for the individual or entity named above and does not constitute
an offer for or advice about any alternative investment product. Such advice
can only be made when accompanied by a prospectus or similar offering
document. Past performance
is not indicative of future performance. Please make sure to review important disclosures
at the end of each article.

Note: Joining BARRONS REPORT is not
an offering for any investment. It represents only the opinions of RF
Culbertson and Associates.

PAST RESULTS ARE NOT INDICATIVE OF
FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN
INVESTING IN MANAGED FUNDS. WHEN CONSIDERING ALTERNATIVE INVESTMENTS (INCLUDING
HEDGE FUNDS) AN INVESTOR SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT
SOME PRODUCTS AND OTHER SPECULATIVE INVESTMENT PRACTICES MAY INCREASE RISK OF
INVESTMENT LOSS; MAY NOT BE SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS
MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING
INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.

Alternative investment performance
can be volatile. An investor could lose all or a substantial amount of his or
her investment. Often, alternative investment fund and account managers have
total trading authority over their funds or accounts; the use of a single advisor
applying generally similar trading programs could mean lack of diversification
and, consequently, higher risk. There is often no secondary market for an
investor's interest in alternative investments, and none is expected to
develop.

All material presented herein is
believed to be reliable but we cannot attest to its accuracy. Opinions
expressed in these reports may change without prior notice. Culbertson and/or
the staff may or may not have investments in any funds cited above.

Remember the Blog: <http://rfcfinancialnews.blogspot.com/>
Until next week – be safe.

Sunday, June 19, 2016

Lately I’m wondering if
Clueless was simply a 1995 movie staring Alicia Silverstone, or whether it was
the ‘shape of things to come’.

1st off, Happy
Father’s Day to all of you lucky fathers out there.

Thanks to SF for reminding
me of the British (musical) invasion of the 60’s and 70’s prompting: “The
British are Coming, The British are Coming”, could be played in reverse this
week.We could be witness to an even
greater rallying cry: “The British are Leaving" – as a British vote to
exit the European Union (BrExit) looms on June 23.Fearful of the BrExit vote, the German 10-year
bond has gone negative for the first time in history. That’s right; traders
have gone ‘Clueless’ and are putting their cash into something that is
essentially a money-losing investment, due to rising BrExit concerns. A vote YES to BrExit is expected to have a
huge negative impact on British and European jobs, trade and markets.

Current British polls show
major moves toward exiting the EU, but the impending outcome is still too close
to call.(FYI: The bookies are betting
on Britain remaining in the EU.)However,
a couple BrExit elements are fairly clear:

-If YES to BrExit,
approximately 5,000 financial service jobs (and people) would be transferred
back into the EU – as their ‘passporting’ privileges would be revoked.

-Voter turnout will
be key, as referendum turnout levels have decreased steadily from 70% to less
than 50% lately. The smaller the
turnout, the more it could be swayed by the BrExit coalition.

-Polling shows us
that: (a) over 50% of British citizenry believe that the EU undermines their
very identity, (b) over 50% realize that Britain’s economy will decline if they
leave the EU, and (c) over 50% of the BrExit supporters are over 55 years old.

-Many of the
factors fueling Donald Trump’s campaign in the U.S. – low wage growth,
declining living standards, disruptive labor market forces such as technology,
immigration and globalization – have also been especially prevalent with the
pro-BrExit supporters.

-For the EU, the
June 23rd referendum comes at an arguably terrible time given: slow
economic growth, simmering Greek tensions, migrant pressures, and increasing
skepticism surrounding the stability of the Euro.

-The number of EU
nationals working in the UK has tripled over the past 10 years, and migrant
figures are rising at a record pace.
BrExit supporters have emphasized weak wage growth and security risks
from migrants as central issues – very much paralleling the Trump presidential
campaign.

On a brighter note, it’s
becoming even clearer that our Congress is ‘Clueless’ about the economy and the
shirking of their fiscal duties until after the general election in November.As an example of this, Ms. Yellen is due to
speak on Capital Hill next week, and one of the pre-released talking points is:
“Could a Trump victory hurt the economy?”My quick advice to Congress is to concentrate on elements that you know
and on ‘getting stuff done’ – and leave the speculation to the media.

Finally, fewer than one in
three U.S. teens obtains a summer job.

The number of summer jobs
that 16 to 19 year olds have secured is down 14% from last year. And last year that same number was nearly 11%
lower than the year before.This is part
of a decades-long trend.While more than
half of teenagers worked summer jobs in the 1970s and 1980s, these days fewer
than one in three do.

One reason for the decline is that teens are choosing not
to work. Many of them are volunteering,
enrolling in educational programs or doing other things that may enhance their
college applications.But also – there are
just fewer opportunities.Restaurants
and retail outlets are still hiring teens, but not as many as in the past,
because they simply don’t need as many workers to meet seasonal demand.And while teens continue to have
opportunities in the classic summer job settings such as: summer camps,
neighborhood pools, and amusement parks – that number is not growing.

Experts see this as having a detrimental impact on teens
because of the sought after experience gained working a summer job. Summer jobs help teens learn accountability,
grit, and how to deal with situations where you don’t LIKE everything.Summer jobs develop responsibility and teach the
value of money, even more than volunteering.This decline could continue until we change the college admissions
process.Currently, while some college admissions
officers value paid work, many look more favorably on a great volunteering experience.
It’s a shame that working for the local
muffler shop might not sound as good on a college application as working on ‘curing
world hunger’ for a charity .

All of this leaves me wondering if ‘Clueless’ was just a
movie staring Alicia Silverstone in 1995, or a disease that is slowly creeping
into virtually everything we do?

The Market:

This is just a normal
market right? Early last week: (a) Japan’s economy received a downgrade,
(b) European markets felt the pressure and were RED by a lot, (c) the Orlando
had a horrific terrorist shooting, and (d) by 10 AM the S&P was down by all
of 1 point.Now you can tell me that
this was just millions of investors, all at the same time, buying the dip – and
I'll laugh at you. Because this action
was clearly our buddies at the Federal Reserve, the European Central Bank, the
Swiss National Bank, the Bank of Japan and others making sure we didn't roll
into a pull back. When the dust settled, we only lost 25 points on
the S&P for the week.Not a terrible
amount actually, given our own FED put in a big time ‘stick save’ on Thursday.

Last week:

-On Monday,
Tuesday and Wednesday – fearful of a BrExit, the markets were soggy.

-On Thursday, the
market was getting really ugly with the DOW down 175 points and the S&P
down 20 – all by 11am.

-Then (all of a
sudden) there was panic buying as Jo Cox (the British Labour Party’s rising
star) was shot dead with a handgun in England.

-The markets rose
because both sides of the BrExit vote had decided to suspend their campaigns in
respect of Ms. Cox.

-The markets also
figured that the BrExit vote would be delayed until July, and rallied over 270 DOW
points to end the day up 93.

-On Friday came
the news that the BrExit vote is still ‘on’, and our markets became soggy
again, ending the day down 58 on the DOW and down 7 on the S&P.

This begs the question: Aren't
handguns illegal in England?According
to the English rifle and gun club
legal center, “Any person possessing a firearm in the U.K. must posses a
Shotgun Certificate or a Firearm Certificate. Machine guns, pepper spray, semi-automatic,
and pump-action rifles, and any firearm that has a barrel less than 30
centimeters in length are prohibited. All handguns, semi-automatic and pump-action
non-rim-fire rifles are prohibited.”So very simply: If people want to do evil – they will find a way.

Last week was lumpy, and only
made worse by the FED’s refusal to raise interest rates.The FED also REDUCED the number of interest
rate increases that they plan on unleashing in 2016 from 4 to 1. That tells me that all of my whining about the
economy being in the toilet is (unfortunately) on the right track, and the
FED’s rosy pictures from earlier in the year were simply baloney.

The BrExit vote is still
on, but it's too close to call. I would personally
love to see them leave, but they probably won't. Therefore, I expect a stagnant market on
Monday and Tuesday, with some possible extra movement on Wednesday if the polls
start to show a really big lead in either direction: stay or leave. By Thursday morning we will have the results. If they vote to ‘stay’, the markets will put
in a relief rally and move higher on the news.If they vote to ‘leave’, the markets may put on a bravado face for a bit
– but ultimately will head lower.

To follow me on Twitter.com and on StockTwits.com to get my daily thoughts
aand trades – my handle is: taylorpamm.

Please be safe out there!

Disclaimer:

Expressed thoughts proffered within
the BARRONS REPORT, a Private and free weekly economic newsletter, are those of
noted entrepreneur, professor and author, R.F. Culbertson, contributing sources
and those he interviews. You
can learn more and get your free subscription by visiting: <http://rfcfinancialnews.blogspot.com>
.

Please write to Mr. Culbertson at:
<rfc@culbertsons.com>
to inform him of any reproductions, including when and where copy will be
reproduced. You may use in complete form or, if quoting in brief, reference
<rfcfinancialnews.blogspot.com>.

If you'd like to view RF's actual
stock trades - and see more of his thoughts - please feel free to sign up as a
Twitter follower - "taylorpamm"
is the handle.

If you'd like to see RF in action -
teaching people about investing - please feel free to view the TED talk that he
gave on Fearless Investing: http://www.youtube.com/watch?v=K2Z9I_6ciH0

Views expressed are provided for
information purposes only and should not be construed in any way as an offer,
an endorsement, or inducement to invest and is not in any way a testimony of,
or associated with Mr. Culbertson's other firms or associations. Mr. Culbertson and related parties are
not registered and licensed brokers. This
message may contain information that is confidential or privileged and is
intended only for the individual or entity named above and does not constitute
an offer for or advice about any alternative investment product. Such advice
can only be made when accompanied by a prospectus or similar offering
document. Past performance
is not indicative of future performance. Please make sure to review important
disclosures at the end of each article.

Note: Joining BARRONS REPORT is not
an offering for any investment. It represents only the opinions of RF
Culbertson and Associates.

PAST RESULTS ARE NOT INDICATIVE OF
FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN
INVESTING IN MANAGED FUNDS. WHEN CONSIDERING ALTERNATIVE INVESTMENTS (INCLUDING
HEDGE FUNDS) AN INVESTOR SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME
PRODUCTS AND OTHER SPECULATIVE INVESTMENT PRACTICES MAY INCREASE RISK OF
INVESTMENT LOSS; MAY NOT BE SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS
MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING
INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.

Alternative investment performance
can be volatile. An investor could lose all or a substantial amount of his or
her investment. Often, alternative investment fund and account managers have
total trading authority over their funds or accounts; the use of a single
advisor applying generally similar trading programs could mean lack of
diversification and, consequently, higher risk. There is often no secondary
market for an investor's interest in alternative investments, and none is
expected to develop.

All material presented herein is
believed to be reliable but we cannot attest to its accuracy. Opinions
expressed in these reports may change without prior notice. Culbertson and/or
the staff may or may not have investments in any funds cited above.

Remember the Blog: <http://rfcfinancialnews.blogspot.com/>
Until next week – be safe.

Sunday, June 12, 2016

“’You're like Jesus, if he was arrogant and all of his
miracles were fake…I'm just trying to create
a space for wisdom.” … Merritt McKinney - Now You See Me 2

Thoughts:

Recently I saw the movie
‘Now You See Me 2’ and it dawned on me that society is making the individual,
global FED players ‘rock stars’, only all of them are “arrogant and all of their miracles are fake”.We are doing this at the expense of the
actual markets, and the companies within them.The stars are now: Janet Yellen, Mario Draghi, Haruhiko Kuroda, Zhou
Xiaochuan, and Mark Carney of the United States, Europe, Japan, China, and
England respectively. Unfortunately, over
the last decade the FED heads have decided that it was their ‘obligation’ to decide
the winners and losers. The losers would
be the savers, pension funds, and insurance funds that have seen interest rates
plummet.The winners are every
corporation that has even the slightest political intention.Nobody realized that by manipulating interest
rates, you would effectively manipulate everything.In fact by pushing interest rates negative, you
force ‘savers’ to increase their risk tolerance and enter the stock market.Instead of ”trying to create a space for wisdom”, investment decisions are being
made on guessing what the various FED heads will do next.

The Bank of Japan (after
introducing negative interest rates) is now actively purchasing Japanese
stocks. They are now a top ten
shareholder in 90% of the stocks traded in Japan. Not to be outdone, the European Central Bank
(ECB) has also moved on from negative interest rates and is purchasing
corporate bonds. This means (for
example) that the citizens of the EU are actually funding the Bayer acquisition
of Monsanto.Bayer (in an effort to
accumulate the funds necessary to purchase Monsanto) sold billions of dollars
of Bayer corporate bonds.The ECB then
printed the appropriate amount of money, and immediately bought the bonds from
Bayer. Therefore, Bayer just received billions
of dollars to buy Monsanto directly from the ECB.If you were Bayer, you never had to increase
sales, or change any business practices.You acquired Monsanto because the ECB printed money out of thin air and
gave it to you. There is no precedent for that amount of FED head
authority or intervention.

We’ve never seen anything
like it. Switzerland, China, Japan, and
the European Central bank all admit to buying stocks. Corporate earnings could go to zero, and
stocks in these areas would still rise just as long as they are being purchased
by money that is simply printed into existence, instead of money that has been
earned and saved. This type of FED head action is being termed the
‘Hidden Hand’.

Marc
Faber of the ‘Gloom, Boom and Doom Report’ said: “Central banks are only interested in their own
prestige. If a particular element did
NOT work in the past, they will do it again and increase the dosage.Eventually, (for example) they will buy all
the bonds, and all the shares outstanding. And when the housing market goes down, they will
buy all the homes – and then the government will own everything."

I have no idea when or how
this all ends, though I'm fairly certain that it won't be pretty. The crazy thing about these FED heads is that
they are all academics that have never worked a day in their lives. However,
their game is not without risk.Goldman
Sachs estimates that a 1% increase in U.S. Treasury yields would trigger over
$1 trillion in losses – exceeding all of the losses from the last financial
crisis.I believe that gold and other
hard assets will be the spectacular winners of this manipulation.George Soros and other semi-retired investors
have also voiced their opinions on the side of buying gold and gold miners. So far this year the Gold Miners (GDX) are up
90% as compared to a 3% increase in the S&P.

To that end I would like
to recommend a FREE precious metals seminar taking place on the 16th,
17th, and 18th of this month.It’s a collection of 20 interviews from the
how’s and why’s of buying precious metals, to identifying fakes and frauds, and
even touching on where to ‘hide’ them. This
online seminar is FREE to listen to, and is $20 to purchase the podcast.It only requires a first name and e-mail to
enter and you can review the speaker list and content at: http://cdi.ontraport.net/t?orid=98572&opid=55.
I have it on excellent authority that it will be the best, free education
you will ever get on the precious metals.

The Market:

Factually:

-China’s
financial defaults are rising significantly,

-Another $2B left
the market last week – making it 10 out of the last 12 weeks where money has
been fleeing the stock market.

-The amount of
global sovereign debt with negative yields surpassed $10 trillion for the first
time in May. It is spread across 14
countries, with Japan by far the largest source of negative-yielding bonds.

-Businesses accumulated
debt in the 1st Quarter of 2016 at the fastest pace in three
quarters. Business debt grew at a
blistering 7.9%, and has expanded by almost 8% in three of the last five
quarters.

-Household debt grew
at a much slower 2.7% pace, with student and auto debt leading the way and
credit card debt growing by 6.1%.
Mortgage debt grew at the slowest pace of 1.6%.

-DS informs me
that for the past 54 consecutive months, rent increases have exceeded pay
increases. This is crushing seniors and
the lower middle class as in many cases – they are spending 40% of their income
on rent.

If you listen to the
market carefully you can almost hear the creaks and groans.The distortions from so much pushing and
pulling on a market that clearly doesn't belong at these levels, are causing
all kinds of problems. In the middle of
the week, the DOW and the S&P were trying to ‘fade lower’, but that ‘Hidden
Hand’ kept powering them back up.On
Friday, the ‘Hidden Hand’ showed up in the final hour to take us off the lows,
but the DOW ended down 119 points and the S&P lost 20.

One of the issues that hit
on Friday was that a new poll in the UK showed 55% of the respondents are
leaning toward a ‘BrExit’, or (in other words) leaning toward having the UK
leave the European Union. The Global Elites
definitely don't want any part of that because it would trigger other nations
following suit. And this is where their ‘one
world government’ plot would start to dissolve in the test tube.

A theory that surfaced on
the back of the BrExit poll concerned the FED meeting this week.The FED has a scheduled meeting focused on interest
rates on Tuesday and Wednesday of this week. Currently, the market is giving the FED a ZERO
chance of doing a rate hike. But if our
FED had inside knowledge that the UK was indeed going to BrExit (leave the EU),
then it could freely raise interest rates and blame the market’s behavior (falling)
on Britain.I'm not saying that is what's
going to happen, but rather a rumor circulating around the trading floor.

On the downside of things,
the S&P has to hold 2085, or we are going to the 50-day moving average at
2076, and then to 2065.On the upside,
if we can gain back all of Friday’s loses and see the market over 2109, then we
could see them try and pull off another run at the old highs.

Remember, this week we
have the FED meeting and ‘triple witching’ on Friday.After that, we have an upcoming vote on
BrExit.Hang onto your hats, as all heck
could break loose over the next two weeks.

TIPS:

I would look at some of
the silver miners whose profit per ounce of silver is moving higher.The ones that I see that have a relatively
low cash cost of mining an ounce of silver from the ground and are increasing
their profit margins are:

-Fortuna Silver
Mines (FSM),

-Avino Silver
& Gold Mines (ASM),

-First Majestic
Silver (AG), and

-Hecla
Mining (HL).

Avino, First Majestic and
Hecla Mining each produced an ounce of silver at about $5 per ounce, in the first quarter of this
year. Fortuna (FSM) produced at same
ounce for $1.44.

I am:

-Long various
mining stocks: AG, AUY, CDE, FFMGF, FSM, NGD, and PAAS,

-And Long an oil
supplier: REN.

To follow me on Twitter.com and on StockTwits.com to get my daily thoughts
aand trades – my handle is: taylorpamm.

Please be safe out there!

Disclaimer:

Expressed thoughts proffered within
the BARRONS REPORT, a Private and free weekly economic newsletter, are those of
noted entrepreneur, professor and author, R.F. Culbertson, contributing sources
and those he interviews. You
can learn more and get your free subscription by visiting: <http://rfcfinancialnews.blogspot.com>
.

Please write to Mr. Culbertson at:
<rfc@culbertsons.com>
to inform him of any reproductions, including when and where copy will be
reproduced. You may use in complete form or, if quoting in brief, reference
<rfcfinancialnews.blogspot.com>.

If you'd like to view RF's actual
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If you'd like to see RF in action -
teaching people about investing - please feel free to view the TED talk that he
gave on Fearless Investing: http://www.youtube.com/watch?v=K2Z9I_6ciH0

Views expressed are provided for
information purposes only and should not be construed in any way as an offer,
an endorsement, or inducement to invest and is not in any way a testimony of,
or associated with Mr. Culbertson's other firms or associations. Mr. Culbertson and related parties are
not registered and licensed brokers. This
message may contain information that is confidential or privileged and is
intended only for the individual or entity named above and does not constitute
an offer for or advice about any alternative investment product. Such advice
can only be made when accompanied by a prospectus or similar offering
document. Past performance
is not indicative of future performance. Please make sure to review important
disclosures at the end of each article.

Note: Joining BARRONS REPORT is not
an offering for any investment. It represents only the opinions of RF
Culbertson and Associates.

PAST RESULTS ARE NOT INDICATIVE OF
FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN
INVESTING IN MANAGED FUNDS. WHEN CONSIDERING ALTERNATIVE INVESTMENTS (INCLUDING
HEDGE FUNDS) AN INVESTOR SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT
SOME PRODUCTS AND OTHER SPECULATIVE INVESTMENT PRACTICES MAY INCREASE RISK OF
INVESTMENT LOSS; MAY NOT BE SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS
MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING
INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.

Alternative investment performance
can be volatile. An investor could lose all or a substantial amount of his or
her investment. Often, alternative investment fund and account managers have
total trading authority over their funds or accounts; the use of a single
advisor applying generally similar trading programs could mean lack of
diversification and, consequently, higher risk. There is often no secondary
market for an investor's interest in alternative investments, and none is
expected to develop.

All material presented herein is
believed to be reliable but we cannot attest to its accuracy. Opinions
expressed in these reports may change without prior notice. Culbertson and/or
the staff may or may not have investments in any funds cited above.

Remember the Blog: <http://rfcfinancialnews.blogspot.com/>
Until next week – be safe.

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